5 Mutual Fund Investment Strategies to Follow in your 30s

By the age of 30, the majority of you must be getting started to start a family and settle down in life. It is a phase of life where one starts to think about investments and savings. There are various plans that one can have for which they start investing, such as buying a house or their first car.

Ideally, it is better to start investing as early as possible, and one of the most effective places to invest your money in is mutual funds as it is not only simple but also allows low sums to be invested. Before getting to know about the strategies that you should follow while investing, you should have a clear idea of mutual funds meaning? Start investing in mutual funds and secure your future effortlessly.

What are Mutual Funds?

If you are wondering about the mutual funds meaning then you should know that it is nothing but a place where investors put their funds, and the collective amount is further invested depending upon the objective of the fund. The collected money is then invested in various assets such as old, bonds, stocks, money market instruments, and more.

Now, one must think that they have to do all these on their own, but that’s not the case as you simply need to invest your contribution and the rest of the work will be done by fund managers or money managers. They analyse the objective and accordingly invest the money with an objective to grow the funds.

The mutual funds meaning must be clear and now let us talk about the types of mutual funds. There are basically four different types – Equity funds, Debt funds, Money market funds, and Hybrid funds. You can consider mutual funds by Scripbox to get more details about mutual funds.

Top Five Mutual Fund Investment Strategies One Should Follow

Consider Investing in Industries Through Sector Funds 

We all know that not all sectors perform equally well and it is always the case that a certain industry is performing better compared to others. If you invest via sector funds in a particular industry, you can get high returns. However, this investment can be a bit risky as there can be a drastic change in the market anytime. However, if you think that a certain sector will surely do well in the future as well, then this can be a perfect option for you. There are various sectors that you can consider exploring such as – infrastructure funds, the rural sector, pharma sector, and more.

You Should Invest Through STP or SIP

STP or Systematic Plan Transfer allows you to invest in a debt fund, which in return will aid you in earning 7 to 9 percent returns per annum. Moreover, it holds very low risk if compared to others. After you have invested, you can shift your money with time to an equity fund of your choice. When it comes to SIP (Systematic Investment Plan), you have to invest a particular amount every month, and that amount will remain fixed for the entire tenure.

The benefit of SIP is that you do not have to pay a higher amount even if the market is down. It should be preferred if you are considering a long-term investment with low risks, and that is how you can enjoy the complete benefits. If you have understood mutual funds meaning then it will be easy for you to understand SIP as well.

Invest in Debt Funds

If you have experienced a major swing in the market and now want to take as little risk as possible, then debt funds will surely make a lot of sense. Debt funds can be a much better option as the returns offered are a bit more when compared to FD. You can simply invest in a debt fund and then later start investing in the regular equity mutual fund when you feel that the condition of the market is better.

Generate a Diversified Portfolio

One of the most popular ways to get low-risk returns is to generate a diversified mutual fund portfolio that consists of multiple asset classes. It will surely allow you to gain a steady return.

Acquire Direct Plans

If you have an option to acquire funds directly, then it makes no sense to waste the money by giving it to the broker. There are various AMC websites through which you can purchase your desired scheme effortlessly.

If you have or are about to start planning your future and investments, then mutual funds make a lot of sense as it offers various services that suit your requirements and the market conditions as well. Before investing, you should consider understanding mutual funds meaning and then go through the strategies mentioned above for better returns and low risks.